FxWirePro: EUR/GBP opens with bullish gap, eyes 200-DMA as Sterling sharply lower on souring Brexit sentiment

EUR/GBP chart on Trading View used for analysis

• EUR/GBP opens with a bullish gap, trades 0.25% higher on the day at 0.8808 at the time of writing.
   
• Brexit fears are back on the table as talks over the weekend sour investor sentiment.
   
• Brexit talks stall out once more sending the Sterling sharply lower across the board. 
   
• Pro-leavers within PM May's parliament are on the warpath again, could probably dent what little progress PM May has managed.
   
• The pair has broken above 23.6% Fib and eyes 200-DMA at 0.8835.
   
• Technical indicators on daily charts are turning bullish.RSI and Stochs are on verge of rollover from over oversold levels and are biased higher.
   
• Break above 200-DMA raises scope for test of 38.2% Fib at 0.8866. Bullish invalidation below 5-DMA.

Support levels - 0.8798 (1H 200-SMA), 0.8765 (5-DMA), 0.8723 (Oct 10 low)

Resistance levels - 0.8835 (200-DMA), 0.8866 (38.2% Fib), 0.8880 (55-EMA)

Recommendation: Good to go long on dips, SL: 0.8760, TP: 0.8835/ 0.8865/ 0.8880

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.